FX.co ★ UK Industrial Output Falls the Most Since 2021

Industrial production in the United Kingdom experienced a 2% month-on-month decrease in September 2025, overturning a downwardly revised 0.3% increase from the previous month and significantly underperforming against market forecasts of a 0.2% reduction. This represented the most pronounced decline since January 2021. The contraction was largely driven by a 1.7% fall in manufacturing output, following a 0.6% rise in August, with a substantial downturn in the production of motor vehicles, trailers, and semi-trailers, plummeting by 28.6%. Additionally, output declined in the electricity, gas, steam, and air conditioning supply sector by 3.4%, contrasting a previous increase of 0.2%, and in the water supply, sewerage, and waste management sector, which contracted by 0.7% compared to a 0.5% gain. Industrial activity continued to decrease in mining and quarrying, showing a contraction of 3.4% compared to the previous month's 2.4% drop. On an annual basis, industrial production declined 2.5% in September, worsening from a downwardly revised 0.5% decrease in August and significantly exceeding market expectations of a 1.2% decline.